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Zara hit with US 'fraud' lawsuit

Zara has been issued with a $5m lawsuit in the US over alleged deceptive pricing.

Zara store at 61 Oxford Street

Zara store at 61 Oxford Street

Zara store at 61 Oxford Street

The lawsuit was filed on 19 August by shopper Devin Rose in the United States District Court for the Central District of California, and is classified as “other fraud”.

The Fashion Law website has reported the litigant’s claims that Zara has been engaged in “fraudulent pricing practices” in the US, as consumers are being charged $5 to $50 more than the lowest tag price in euros.

Rose filed the case after he bought three Zara shirts that he claims had a price tag of €9.95 each, working out at around $11.26 each. Rose said he was charged $17.90 per garment – a mark-up of nearly 60%.

A spokeswoman for Zara US told Drapers: “Zara USA vehemently denies any allegations that the company engages in deceptive pricing practices in the United States. While we have not yet been served the complaint containing these baseless claims, we pride ourselves in our fundamental commitment to transparency and honest, ethical conduct with our valued customers.

“We remain focused on providing excellent customer service and high-quality fashion products at great value for our customers. We look forward to presenting our full defence in due course through the legal process.”

 

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